If you are into crypto assets you must have come across crypto coins and crypto tokens. However, what is a coin? and how is it different from a crypto token? A crypto coin is a form of crypto asset that is native to its blockchain system acting as a medium exchange along with a store of value. Crypto coins can be mined through the process of proof of work (PoW) and proof of stake (PoS). Some examples of crypto coins are Bitcoin (BTC), Cardano (ADA), and Ether (ETH).
The crypto token is created for a decentralized project on an existing blockchain system. It represents certain platform-specific features to asset holders. Functions such as utility, governance, and security is offered by tokens. Examples of tokens are Cronos (CRO), Uniswap (UNI), PancakeSwap (CAKE), etc.
Although many people interchangeably use the terms “crypto coins” and “crypto tokens”, they are not the same thing. Crypto coins are a form of digital currency that are native to the blockchain system with its main agenda to act as the medium of exchange or storehouse of value. Crypto tokens on the other hand are digital assets that are built over existing blockchain systems with the help of smart contracts.